What was the change in operating lease liabilities for Potbelly Sandwich Works in 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
n relating to leases is as follows:
| Fiscal Year Ended | ||||
|---|---|---|---|---|
| December 29, 2024 | December 31, 2023 | |||
| Operating cash flows rent paid for operating lease liabilities | $ | 42,718 | $ | 45,846 |
| Operating right-of-use assets obtained in exchange for new operating lease liabilities | 17,683 | 12,286 | ||
| Reduction in operating right-of-use assets due to lease |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the company's rent paid for operating lease liabilities was $45,846,000 in the fiscal year ended December 31, 2023, and $42,718,000 in the fiscal year ended December 29, 2024. This represents a decrease of $3,128,000 in rent paid for operating lease liabilities from 2023 to 2024.
Additionally, Potbelly Sandwich Works obtained $12,286,000 in operating right-of-use assets in exchange for new operating lease liabilities during the fiscal year ended December 31, 2023, and $17,683,000 during the fiscal year ended December 29, 2024. This signifies an increase of $5,397,000 in operating right-of-use assets obtained in exchange for new operating lease liabilities from 2023 to 2024.
Furthermore, Potbelly Sandwich Works experienced a reduction in operating right-of-use assets due to lease modifications of $1,799,000 in the fiscal year ended December 31, 2023, and $3,436,000 in the fiscal year ended December 29, 2024. This indicates an increase of $1,637,000 in the reduction of operating right-of-use assets due to lease modifications from 2023 to 2024. These figures are important for prospective franchisees to understand the scale and changes in Potbelly Sandwich Works' lease obligations and asset management.